The Wallace Group's current condition and current issues have been identified in this case study. As a result, it is necessary to identify the issue areas and offer potential solutions to President Harold Wallace. The organization must design a solid strategy to ensure a smooth transition and to turn problems into opportunities (Wheelen and Hunger, 2012). The Wallace group is currently dealing with a difficulty as they transition to a more diverse organization. The advice is around how the business should transition from a solely commercial concern to a more complex and diverse organizational structure. Currently, the Wallace Group comprises of three Subgroups name: Electronics, Chemicals, and Plastics. It is managed by the Chairman and President. According to its stock records, Wallace owns 45% of the Stock. The three subgroups (Electronics, Chemicals, and Plastics) are always managed and ran by the Vice-president (Wheelen and Hunger, 2012). Following the situation and challenges experienced by the firm, the senior managers asked for Wallace resignation but voting defeated. The Hired Management consultant recently came up with a protocol for identifying problems in the company which would afterward come up solutions for the identified problems.
Relevant factual information about the problem or decision the organization faced
The current Situation of the firm is as follows: the total sales revenues of the three subgroups sum up to $ 70 million. Of which 50 % came from Electronics, 29 % from Chemical, and 21 % from Plastics (Wheelen and Hunger, 2012).
Explanation of relevant concepts, theories, and application derived from course material
The film is in a Strategic Posture where they lack clear strategies for long-term goals, plans, and objectives. They also lack direction on Top management’s part. As a result of these issues, they have run short of good leaders that have made the firm not to have proper organization setup (Wheelen and Hunger, 2012).
Recommendation
Following the issues experienced by the firm, it would be appropriate adopt corporate governance to find solutions for the current problems encountered by the company. This would, therefore, imply that the company ownership and management would be the same (Wheelen and Hunger, 2012). There will be no goals and objectives for positions which are newly created especially for the senior most officials (managers). This would also assist in establishing a good relationship between the top management and the function groups.
Alternative recommendation
Alternatively, the firm can come up with research division that would look into developing new initiatives that would foresee the firm’s demands and issues addressed. The company can know the needs of its clients and meet them appropriately given that the research division will be proposing new initiatives that would foresee some of the current and upcoming challenges by the firm (Wheelen and Hunger, 2012).
Conclusion
In summary, the Wallace Group is experiencing some managerial issues. As a result, it needs to adopt corporate governance alongside developing a research unit that would look down to settle its problems and challenges. This strategy would enable smooth transformation and change the challenges into opportunity and encase it. The corporate governance revolves around how the organization would evolve from sole propitiatory concern to more complex diversified organization structure that would quickly settle its issues of management.
References
Wheelen, T., & Hunger, J. (2012). Cases in strategic Management. In Strategic management and business policy: Toward global sustainability (13th ed., pp. 2-1). Upper Saddle River, N.J.: Pearson Prentice Hall.
